Reed Smith Client Alerts

Starting on Monday, 20 April 2020, the UK government is expanding its corporate loan scheme to include large businesses. Under the Coronavirus Large Business Interruption Loan Scheme (CLBILS), firms with a turnover of more than £45 million will be able to apply to accredited lenders for finance facilities, with the UK government providing a partial guarantee of any amount borrowed under the scheme.

Authors: Claude Brown Kevin-Paul Deveau Karen Butler Nicholas Williams Michael J. Young Sakil A. Suleman

London city view from under a bridge

This initiative seeks to address the ‘stranded middle’ of businesses in the UK that were largely overlooked by the UK government’s original support package for UK businesses and employees – namely, those with a turnover of more than £45 million in 2019 but which do not have an investment grade credit rating. 

Programme

Eligibility

Turnover < £45m

Turnover > £45m

Investment grade

Coronavirus Business Interruption Loan Scheme

X

Coronavirus Large Business Interruption Loan Scheme

X

X

COVID-19 Corporate Financing Facility

X

Separately, the UK government also announced funding of up to £1.25 billion for start-ups, which will be made available through a new government-backed loan scheme (which requires matching funds from the private sector) and the expansion of an existing grants and loan scheme for focussed on research and development.